PROJECTS

Kerkasha - Eritrea

Kerkasha – Eritrea

Ownership 100% Alpha. Area = 1,028km² with Four (4) areas of Colonial (Italian) workings currently identified. Seven (7) Artisanal gold mining Prospects currently identified.

 

Early Au-Cu-Ag discovery at Anagulu: 52m @ 2.33 g/t Au & 1.05% Cu & 6.53g/t Ag (80 – 132m in DD Hole AND001)

 

Significant, high quality dataset available from exploration programmes carried out by Anglo Gold Ashanti and Alpha Exploration that has generated Target Areas from traditional prospecting through to ‘cutting edge’ Machine Learning

The Kerkasha Exploration License Agreement granted on the 10 January 2018, it covers an area of 973km² and is valid for 3 years. The license area has the potential for gold & base metal mineralisation.

  • There is the ability to negotiate time extensions for the license after the initial 3 year period.
  • On the 13th September 2018, Alpha was granted an Extension Area (55km²) in the northeast of the original Kerkasha Licence that increased the area of the Kerkasha License to 1,028km².
Exploration Targets:

– (Sukari Type)           Bulk tonnage low grade gold deposit at margin of syn-tectonic intrusion.
– (Zara Type)               High grade, deep vein orogenic gold deposit.
– (Augaro Type)          Structurally controlled gold-copper deposit.
– (Bisha Type)             Volcanogenic massive sulphide (VMS) copper-zinc-gold deposit.
– (Jebel Ohier Type)   Porphyry copper-gold deposit.

Historic Exploration & Mining of Kerkasha License Area

COLONIAL PERIOD & ARTISANAL MINING

During the period of Italian Colonial rule in Eritrea from 1890 until the end of the Second World War, there was a sustained programme of exploration and mining of orogenic gold deposits within the country. The Kerkasha Exploration License has four (4) documented Italian Gold Mines (Asheshi, Fankop, Aburna and Abbi) and seven (7) areas of recent Artisanal Mining (Kosolda, Ebinte, Balak, Gulul, Shakat, Dase and Dekemhare) within the License area.

EXPLORATION OF KERKASHA BY ANGLOGOLD-ASHANTI (2010 - 2013)

Fortunately, the work carried out by Anglo Gold Ashanti on behalf of the Thani-Ashanti Alliance is of high quality and has presented Alpha with a sound and extensive dataset that would take significant time and money to develop. This has allowed for a sophisticated ‘Machine Learning’ and ‘Probabilistic Modelling’ regional appraisal of the entire License Area and an early focus on Prospect scale exploration and drilling. Anglo Gold Ashanti carried out the following work programmes:

  • Remote sensing studies.
  • Regional geological mapping.
  • A heli-borne combined Versatile Time Domain Electromagnetic (VTEM)/Radiometric/Magnetic survey over the entire License Area.
  • Regional stream sediment sampling programme (640 samples) with Bulk Leach Extractable Gold (BLEG) analysis for a sub set of samples (28 samples).
  • Regional and Prospect scale rock chip sampling (184 samples).
  • Prospect scale geological mapping over the six most promising areas for orogenic gold mineralisation (Kosolda, Asoshi, Balak, Shakat, Gulul and Aborita/Dase Prospects).

The main emphasis of the Anglo Gold Ashanti exploration was for orogenic gold. The search for volcanogenic massive sulphides (VMS) within the volcanic belts was not pursued to the same extent.
The Thani-Ashanti Alliance relinquished the property for corporate reasons, not geological reasons. The AngloGold Ashanti group dramatically reduced their worldwide exploration effort during 2013 and the relinquishment of Kerkasha was part of this restructuring.

KERKASHA LICENSE
  • Ownership 100% Alpha.
  • Area = 1,028km².
  • Four (4) areas of Colonial (Italian) workings currently identified.
  • Seven (7) Artisanal gold mining Prospects currently identified.
  • Seven (7) new Prospect Areas identified by Alpha exploration (including the Anagulu Au-Cu discovery).
  • Located in highly prospective Nakfa Terrain rocks (hosts Bisha, Hambok and Zara deposits).
  • On Augaro -Kerkasha ‘gold trend’.
  • Significant, high quality dataset available from exploration programmes carried out by Anglo Gold Ashanti
  • Alpha Exploration has generated new Target Areas from traditional prospecting through to ‘cutting edge’ Machine Learning, Probabilistic modelling and geochemical data analysis (Centre Log Ratio &Z Score Normalisation) that remain untested by drilling.
ANAGULU DISCOVERY
  • Virgin Au-Cu discovery by Alpha Exploration at Anagulu Prospect.
  • Coincident soil & rock chip anomalies for Au & Cu at surface over 2kms long (strike 45°).
  • Coincident chargeability-resistivity-gravity anomalies up to 3.5kms long (strike 45°).
  • 2km long chargeability anomaly coincident with 2km soil & rock chip Au-Cu anomalies.
  • Drill Results (High Grade):
    • AND001:       52m @  2.33 g/t Au & 1.05% Cu & 6.53g/t Ag    (  80-132m)
      • Discovery Hole January 2020 – (Au Equivalent of 3.39g/t on 26 May 2020)
    • AND005:      27m @   2.67 g/t Au & 0.89% Cu & 6.64g/t Ag (121-148m)
    • ANR016:        7m @ 12.39 g/t Au & 0.05% Cu & 0.51g/t Ag (151-158m)
  • Drill Results (Low Grade):
    • AND005:     109m @  0.79 g/t Au & 0.35% Cu &  2.21g/t Ag (  99-208m)
    • ANRO17:      81m @  0.54 g/t Au & 0.28% Cu &  1.37g/t Ag (    9-90m )
    • ANR029:       70m @  0.56 g/t Au & 0.37% Cu &  1.71g/t Ag (  48-118m)
    • AND008      118m @  0.21 g/t Au & 0.13% Cu                       (225-343m)
    • ANR015:       42m @  0.29 g/t Au & 0.18% Cu & 0.78g/t Ag  (  94-136m)
    • AND003:       70m @  0.14 g/t Au & 0.12% Cu & 0.56g/t Ag  (173-243m)
ALPHA EXPLORATION TIMELINE (JANUARY 2018 – APRIL 2021)
ANAGULU PROSPECT

Geological map of Kerkasha (1:40,000 scale) with Anagulu Prospect (red dashed ellipsoid in the southwest) and locations of Colonial Mines, Artisanal Mines & other Prospects

The primary control for Au-Cu mineralisation at Anagulu is the ~200m wide shear zone at the contact between the mafic volcaniclastics and the felsic metasediments (black dotted line).

Geology – Anagulu

 

Unexplained gravity anomalies AN-H1 & AN-H2 (white dashed ellipsoids) immediately to the northwest and sub parallel to the mafic volcaniclastic and the felsic metasediment contact:

Gravity anomalies (white dashed ellipsoids) on geology – Anagulu

 

Resistivity anomaly (white polygon) sub parallel to the mafic volcaniclastic and the felsic metasediment contact:

Resistivity anomaly (white polygon) with gravity anomalies and geology – Anagulu

 

Chargeability anomalies AT01 & AT02 (blue polygons) increasing in intensity from 100m vertical depth to 250m vertical depth (depth extent of survey) immediately to the northwest and southeast and sub parallel to, the mafic volcaniclastic and the felsic metasediment contact. The ATO1 chargeability anomaly is coincident with the two gravity anomalies (AN-H1 & AN-H2):

Chargeability anomalies (blue polygons) with resistivity and gravity anomalies and geology – Anagulu

 

Coincident soil & rock chip anomalies for Au & Cu (yellow polygons 1 & 2) at surface over 2kms long immediately to the southeast and sub parallel to the mafic volcaniclastic and the felsic metasediment contact. Another smaller Au-Cu anomaly (yellow polygon 3) is starting to appear immediately northwest of the coincident gravity (AN-H2), resistivity and chargeability (AT-01) anomalies in the northeast of the Prospect:

Au-Cu rock chip and soil anomalies (yellow polygons 1, 2 & 3) with chargeability, resistivity and gravity anomalies and geology – Anagulu

 

The best zone of drilling to date (red ellipsoid) in coincident with:

  • Anomalous Au-Cu in soil and rock chips (Area1)
  • The AT-02 chargeability anomaly and
  • Immediately southeast of the mafic volcaniclastic and the felsic metasediment contact:

Best zone of drilling (red ellipsoid) with Au-Cu rock chip and soil anomalies, chargeability, resistivity and gravity anomalies and geology – Anagulu

ABURNA PROSPECT

Located 7kms due north of the Anagulu Prospect.

Geological map of Kerkasha (1:40,000 scale) with Aburna Prospect (red dashed ellipsoid in the southwest) and locations of Colonial Mines, Artisanal Mines & other Prospects

 

The Prospect sits bound by two generally north-south structures and has the same northeast orientation for mineralisation to the Anagulu Prospect.

Very significant Au results from rock chip sampling are located over an ~6km northeast trend (zone of interest) at the contact between a granodiorite and a mafic. Very high values for Au were also returned over a kilometre to the northwest of the contact, within the mafic.

Rock chip sample assays for Au above 1g/t (labelled) on geology – Aburna

Gold tail in dish from panning in Artisanal Area – Aburna

The Aburna Prospect was identified as very similar to the Anagulu Prospect from ‘Machine Learning’ (white spots over Anagulu Prospect in diagram below) and probabilistic modelling (thematic image in diagram below) of all our regional datasets (airborne magnetics, radiometrics, electromagnetics, Aster imagery, solid geology, structure, 35 element surface geochemistry). The probabilistic modelling was carried out in late 2018 and identified Aburna as prospective before our traditional geological prospecting identified it.

Preferred Max-Ent thematic map for Anagulu & Kona type Au & Cu Targets

Intriguingly, the Machine learning has also identified a Prospect that has yet to be investigated that is ~5kms east of Anagulu and aligned in the same orientation.

TOLEGIMJA PROSPECT

Located in the northeast of the Kerkasha Project

Geological map of Kerkasha (1:40,000 scale) with Aburna Prospect (red dashed ellipsoid in the northeast) and locations of Colonial Mines, Artisanal Mines & other Prospects

 

Gossan & exhalate outcrops in the northeast linked with anomalous Cu-Au-Zn in soils (over ~3kms) to a malachite rich mafic-felsic contact in the southwest. The very impressive Cu-Au-Zn soil anomaly is larger than the Au-Cu soil anomaly over Anagulu Prospect and remains open to the southwest, northwest and northeast.

This Prospect has had no drilling on it to date.

The Tolegimja Prospect was identified as very similar to the Anagulu Prospect from ‘Machine Learning’ (white spots over Anagulu Prospect in diagram below) and probabilistic modelling (thematic image in diagram below) of all our regional datasets (airborne magnetics, radiometrics, electromagnetics, Aster imagery, solid geology, structure, 35 element surface geochemistry). The probabilistic modelling was carried out in late 2018 and identified Tolegimja as prospective before our traditional geological prospecting identified it.

Preferred Max-Ent thematic map for Anagulu & Kona type Au & Cu Targets

NEXT STEPS IN EXPLORATION
ANAGULU:
  • Drill test the coincident rock chip-soil-chargeability-Resistivity anomalies to depth beneath and along strike of best drill intercepts to date.
  • Drill test the coincident rock chip-soil-chargeability-Resistivity anomalies to depth beneath and along strike of best drill intercepts to date.
  • Extend the 20m x 20m soil analysis (portable XRF) survey and then review all geological, geochemical and geophysical data.
  • Extend the Chargeability-Resistivity survey to the northwest, south and southeast.
  • Carry out preliminary metallurgical test-work & environmental baseline studies if the drill programmes return positive results.
ABURNA:
  • Complete the 100m x 100m soil sampling over the Prospect area.
  • Drill test with RC and/or Diamond drilling the Au anomalous areas from soil and rock chip sampling at Aburna north Prospect.
TOLEGIMJA:
  • Carry out a Chargeability-Resistivity survey over Tolegimja the Prospect Area.
  • Develop a LeapFrog 3D model of all geological, geophysical & geochemical datasets over Tolegimja.
  • Drill test with RC and/or Diamond drilling any new zones of potential mineralisation generated from the 3D modelling.
REGIONAL EXPLORATION:
  • Follow up on new Target Areas identified from Dr Michael Gazley’s updated evaluation of regional and Prospect scale surface geochemical datasets.
EXPANSION WITHIN THE ARABIAN-NUBIAN SHIELD:
  • Acquire a second License in Eritrea.
  • Consider ground acquisition in Sudan and Ethiopia.